Mondelez International Reports 2014 Results and Provides 2015 Outlook
Financial Schedules and GAAP to Non-GAAP Information
Earnings Release
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"In 2014, we delivered strong earnings growth, margin expansion and cash flow in a challenging consumer and retail environment by driving record net productivity and aggressively reducing overheads," said
"As we execute our transformation agenda in 2015, we expect to deliver modest organic revenue growth as well as solid margin expansion and strong constant-currency earnings growth. We remain on a clear path to achieve our 2016 margin target and to drive sustainable earnings and revenue growth over the long term. We're continuing to execute our cost-reduction initiatives to expand margins and to make the necessary foundational investments in our brands, innovation platforms, routes to market and supply chain, so we're well-positioned to accelerate revenue growth as consumer demand improves."
Full Year GAAP Results
On a reported basis, net revenues were
Organic Net Revenue1
Quarter 4 |
Full Year |
|||||||||||||||
Reported |
vs PY |
Organic |
Power Brand Growth |
Reported |
vs PY |
Organic |
Power Brand Growth |
|||||||||
|
|
(7.3)% |
15.3 % |
18.1 % |
|
(4.3)% |
15.1 % |
14.5 % |
||||||||
|
1,145 |
(5.3) |
(1.1) |
2.2 |
4,605 |
(7.0) |
(2.8) |
(2.2) |
||||||||
|
898 |
(15.7) |
6.3 |
14.3 |
3,638 |
(7.1) |
6.5 |
11.3 |
||||||||
|
3,761 |
(6.7) |
1.1 |
1.8 |
13,912 |
(1.0) |
(1.0) |
0.5 |
||||||||
|
1,786 |
(3.1) |
(1.5) |
(0.8) |
6,936 |
(0.8) |
0.8 |
2.2 |
||||||||
Mondelēz International |
|
(6.9)% |
2.9 % |
5.2 % |
|
(3.0)% |
2.4 % |
4.1 % |
||||||||
Full Year Commentary
Organic Net Revenue increased 2.4 percent, driven by strong pricing performance (up 4.5 percentage points), which more than offset unfavorable volume/mix (down 2.1 percentage points). The decline in volume/mix was largely due to price elasticity, a slow response by competitors to higher input costs and the impact of significant price-related customer disruptions that are largely resolved. Organic Net Revenue from emerging markets5 was up 7.0 percent, while developed markets6 decreased 0.5 percent. Overall, Power Brands grew 4.1 percent.
Operating Income and Diluted EPS
$ in millions |
Reported |
|||||||||||||
Q4 |
vs PY |
FY |
vs PY |
|||||||||||
Gross Profit |
|
(9.9)% |
|
(3.9)% |
||||||||||
Gross Profit Margin |
35.6 % |
(1.2)pp |
36.8 % |
(0.3)pp |
||||||||||
Operating Income |
|
(41.7)% |
|
(18.4)% |
||||||||||
Operating Income Margin |
6.7 % |
(3.9)pp |
9.5 % |
(1.7)pp |
||||||||||
Net Earnings7 |
|
(71.7)% |
|
(44.2)% |
||||||||||
Diluted EPS |
|
(71.0)% |
|
(41.6)% |
||||||||||
Adjusted1 |
||||||||||||||
Q4 |
vs PY |
vs PY |
FY |
vs PY |
vs PY |
|||||||||
Gross Profit |
|
(10.5)% |
(1.1)% |
|
(4.2)% |
0.6 % |
||||||||
Gross Profit Margin |
35.7 % |
(1.4)pp |
36.8 % |
(0.6)pp |
||||||||||
Operating Income |
|
(11.3)% |
0.1 % |
|
3.5 % |
10.2 % |
||||||||
Operating Income Margin |
13.2 % |
(0.7)pp |
12.9 % |
0.8 pp |
||||||||||
Net Earnings |
|
6.6 % |
|
8.9 % |
||||||||||
Diluted EPS |
|
11.9 % |
26.2 % |
|
14.3 % |
23.4 % |
Full Year Commentary
Adjusted Gross Profit1 increased 0.6 percent on a constant-currency basis. Adjusted Gross Profit margin was 36.8 percent, down 0.6 percentage points, including a negative 0.5 percentage point impact from the mark-to-market adjustments associated with commodities and currency hedging. Excluding this impact, Adjusted Gross Profit margin was essentially flat as higher prices and a strong contribution from supply chain productivity offset input cost inflation.
Adjusted Operating Income grew 10.2 percent on a constant-currency basis. Adjusted Operating Income margin expanded 0.8 percentage points to 12.9 percent, driven primarily by strong gains in
Adjusted EPS grew 23.4 percent on a constant-currency basis, driven by operating gains, lower interest expense and share repurchases.
Free Cash Flow, Share Repurchases and Dividends
For the full year, Free Cash Flow excluding items1 was
Outlook
In 2015, the company expects Organic Net Revenue growth of at least 2 percent, after accounting for the company's strategic decision to exit certain lower-margin revenue. Adjusted Operating Income margin is expected to be approximately 14 percent for the year, with margin expansion accelerating in the second half, driven by the timing of cost-reduction programs. Adjusted EPS is expected to increase at a double-digit rate on a constant-currency basis.
With approximately 80 percent of revenues in currencies not tied to the strengthening U.S. dollar, the company estimates foreign exchange translation to reduce 2015 net revenue growth by approximately 11 percentage points and Adjusted EPS by approximately
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About
End Notes
- Organic Net Revenue, Adjusted Operating Income, Adjusted EPS, Adjusted Gross Profit and Free Cash Flow excluding items are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.
- Includes both the 2012-2014 Restructuring Program and the 2014-2018 Restructuring Program. Please see discussion of non-GAAP financial measures at the end of this press release for more details about both programs.
-
In
August 2013 , the company recorded a$363 million favorable impact related to the resolution of aCadbury acquisition tax indemnification, including$336 million in selling, general and administrative expenses and$49 million in interest and other expense, net partially offset by$22 million of tax expense. -
On
December 13, 2013 , the independent arbitrator in the dispute between Kraft Foods Group andStarbucks Coffee Company issued a decision and Final Award that Starbucks must pay$2.8 billion in total cash compensation for its unilateral termination of the companies' license and supply agreement. The company recorded a gain, net of taxes, of$1.6 billion during the fourth quarter of 2013. -
Emerging markets consist of the
Latin America andEastern Europe ,Middle East andAfrica regions in their entirety; theAsia Pacific region, excludingAustralia ,New Zealand andJapan ; and the following countries from theEurope region:Poland , Czech & Slovak Republics,Hungary ,Bulgaria ,Romania , the Baltics and the East Adriatic countries. -
Developed markets include the entire
North America region, theEurope region excluding the countries included in the emerging markets definition, andAustralia ,New Zealand andJapan from theAsia Pacific region. -
Net earnings attributable to
Mondelez International . -
Currency estimate is based on spot rates as of the close of business on
January 30, 2015 .
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words, such as "will," "expect," "intend," "would," "estimate," "achieve," "drive," "positioned," "target," "outlook" and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about: our future performance, including our future revenue growth, earnings per share and margins; consumer demand; currency and the effect of foreign exchange translation on our results of operations; category growth; the timing of cost-reduction programs; the costs of, timing of expenditures under and completion of our restructuring programs; the cash proceeds and ownership interest to be received in the coffee transactions; completion of our biscuit operation acquisition; and our Outlook, including 2015 Organic Net Revenue growth, Adjusted Operating Income margin and Adjusted EPS. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Such factors include, but are not limited to, risks from operating globally and in emerging markets, changes in currency exchange rates, continued volatility of commodity and other input costs, pricing actions, weakness in economic conditions, weakness in consumer spending, unanticipated disruptions to our business, competition, the restructuring programs and our other transformation initiatives not yielding the anticipated benefits, changes in the assumptions on which the restructuring programs are based, failing to successfully complete the coffee transactions on the anticipated time frame and tax law changes. Please also see our risk factors, as they may be amended from time to time, set forth in our filings with the
Schedule 1 |
||||||||||||||
|
||||||||||||||
Condensed Consolidated Statements of Earnings |
||||||||||||||
(in millions of U.S. dollars, except per share data) (Unaudited) |
||||||||||||||
For the Three Months Ended |
For the Twelve Months Ended |
|||||||||||||
2014 |
2013 |
% Change |
2014 |
2013 |
% Change |
|||||||||
Net revenues |
$ 8,830 |
$ 9,488 |
(6.9)% |
$ 34,244 |
$ 35,299 |
(3.0)% |
||||||||
Cost of sales |
5,684 |
5,995 |
5.2 % |
21,647 |
22,189 |
2.4 % |
||||||||
Gross profit |
3,146 |
3,493 |
(9.9)% |
12,597 |
13,110 |
(3.9)% |
||||||||
Gross profit margin |
35.6% |
36.8% |
36.8% |
37.1% |
||||||||||
Selling, general and administrative expenses |
2,101 |
2,294 |
8.4 % |
8,457 |
8,679 |
2.6 % |
||||||||
Asset impairment and exit costs |
407 |
138 |
(100.0+)% |
692 |
273 |
(100.0+)% |
||||||||
Gains on acquisition and divestitures, net |
- |
(2) |
(100.0)% |
- |
(30) |
(100.0)% |
||||||||
Amortization of intangibles |
49 |
53 |
7.5 % |
206 |
217 |
5.1 % |
||||||||
Operating income |
589 |
1,010 |
(41.7)% |
3,242 |
3,971 |
(18.4)% |
||||||||
Operating income margin |
6.7% |
10.6% |
9.5% |
11.2% |
||||||||||
Interest and other expense, net |
(29) |
847 |
100.0+% |
688 |
1,579 |
56.4 % |
||||||||
Earnings before income taxes |
618 |
163 |
100.0+% |
2,554 |
2,392 |
6.8 % |
||||||||
Provision / (benefit) for income taxes |
111 |
(7) |
(100.0+)% |
353 |
60 |
(100.0+)% |
||||||||
Effective tax rate |
18.0% |
(4.3)% |
13.8% |
2.5% |
||||||||||
Earnings from continuing operations |
507 |
170 |
100.0+% |
$ 2,201 |
$ 2,332 |
(5.6)% |
||||||||
Earnings from discontinued operations, net of income taxes |
- |
1,603 |
(100.0)% |
- |
1,603 |
(100.0)% |
||||||||
Net earnings |
507 |
1,773 |
(71.4)% |
2,201 |
3,935 |
(44.1)% |
||||||||
Noncontrolling interest |
7 |
7 |
- |
17 |
20 |
15.0% |
||||||||
Net earnings attributable to |
$ 500 |
$ 1,766 |
(71.7)% |
$ 2,184 |
$ 3,915 |
(44.2)% |
||||||||
Per share data: |
||||||||||||||
Basic earnings per share attributable to |
||||||||||||||
- Continuing operations |
$ 0.30 |
$ 0.10 |
100.0+% |
$ 1.29 |
$ 1.30 |
(0.8)% |
||||||||
- Discontinued operations |
- |
0.91 |
(100.0)% |
- |
0.91 |
(100.0)% |
||||||||
Basic earnings per share attributable to |
$ 0.30 |
$ 1.01 |
(70.3)% |
$ 1.29 |
$ 2.21 |
(41.6)% |
||||||||
Diluted earnings per share attributable to |
||||||||||||||
- Continuing operations |
$ 0.29 |
$ 0.09 |
100.0+% |
$ 1.28 |
$ 1.29 |
(0.8)% |
||||||||
- Discontinued operations |
- |
0.91 |
(100.0)% |
- |
0.90 |
(100.0)% |
||||||||
Diluted earnings per share attributable to |
$ 0.29 |
$ 1.00 |
(71.0)% |
$ 1.28 |
$ 2.19 |
(41.6)% |
||||||||
Average shares outstanding: |
||||||||||||||
Basic |
1,677 |
1,743 |
3.8 % |
1,691 |
1,774 |
4.7 % |
||||||||
Diluted |
1,695 |
1,761 |
3.7 % |
1,709 |
1,789 |
4.5 % |
Schedule 2 |
|||||
|
|||||
Condensed Consolidated Balance Sheets |
|||||
(in millions of U.S. dollars) (Unaudited) |
|||||
|
|
||||
2014 |
2013 |
||||
ASSETS |
|||||
Cash and cash equivalents |
$ 1,631 |
$ 2,622 |
|||
Receivables, net |
4,708 |
5,403 |
|||
Inventories, net |
3,480 |
3,743 |
|||
Deferred income taxes |
480 |
517 |
|||
Other current assets |
1,408 |
889 |
|||
Total current assets |
11,707 |
13,174 |
|||
Property, plant and equipment, net |
9,827 |
10,247 |
|||
Goodwill |
23,389 |
25,597 |
|||
Intangible assets, net |
20,335 |
21,994 |
|||
Prepaid pension assets |
53 |
54 |
|||
Other assets |
1,461 |
1,449 |
|||
TOTAL ASSETS |
$ 66,772 |
$ 72,515 |
|||
LIABILITIES AND EQUITY |
|||||
Short-term borrowings |
$ 1,305 |
$ 1,594 |
|||
Current portion of long-term debt |
1,530 |
1,003 |
|||
Accounts payable |
5,299 |
5,345 |
|||
Accrued marketing |
2,047 |
2,318 |
|||
Accrued employment costs |
946 |
1,043 |
|||
Other current liabilities |
2,837 |
3,051 |
|||
Total current liabilities |
13,964 |
14,354 |
|||
Long-term debt |
13,865 |
14,482 |
|||
Deferred income taxes |
5,512 |
6,282 |
|||
Accrued pension costs |
2,912 |
1,962 |
|||
Accrued postretirement health care costs |
526 |
412 |
|||
Other liabilities |
2,140 |
2,491 |
|||
TOTAL LIABILITIES |
38,919 |
39,983 |
|||
TOTAL EQUITY |
27,853 |
32,532 |
|||
TOTAL LIABILITIES AND EQUITY |
$ 66,772 |
$ 72,515 |
|||
|
|
||||
2014 |
2013 |
Incr/(Decr) |
|||
Short-term borrowings |
$ 1,305 |
$ 1,594 |
$ (289) |
||
Current portion of long-term debt |
1,530 |
1,003 |
527 |
||
Long-term debt |
13,865 |
14,482 |
(617) |
||
Total Debt |
16,700 |
17,079 |
(379) |
||
Cash and cash equivalents |
1,631 |
2,622 |
(991) |
||
Net Debt (1) |
$ 15,069 |
$ 14,457 |
$ 612 |
||
(1) |
Net debt is defined as total debt, which includes short-term borrowings, current portion of long-term debt and long-term debt, less cash and cash equivalents. |
Schedule 3 |
|||
|
|||
Condensed Consolidated Statements of Cash Flows |
|||
(in millions of U.S. dollars) |
|||
(Unaudited) |
|||
For the Twelve Months |
|||
2014 |
2013 |
||
CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES |
|||
Net earnings |
$ 2,201 |
$ 3,935 |
|
Adjustments to reconcile net earnings to operating cash flows: |
|||
Depreciation and amortization |
1,059 |
1,077 |
|
Stock-based compensation expense |
141 |
128 |
|
Deferred income tax benefit |
(186) |
(64) |
|
Gains on acquisition and divestitures, net |
- |
(30) |
|
Asset impairments |
240 |
97 |
|
Benefit from indemnification resolution |
- |
(385) |
|
Loss on early extinguishment of debt |
493 |
608 |
|
Unrealized gain on planned coffee business divestiture currency hedge |
(628) |
- |
|
Other non-cash items, net |
(184) |
(19) |
|
Change in assets and liabilities, net of acquisitions and divestitures: |
|||
Receivables, net |
184 |
492 |
|
Inventories, net |
(188) |
(116) |
|
Accounts payable |
387 |
793 |
|
Other current assets |
(86) |
(42) |
|
Other current liabilities |
135 |
62 |
|
Change in pension and postretirement assets and liabilities, net |
(6) |
(126) |
|
Net cash provided by operating activities |
3,562 |
6,410 |
|
CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES |
|||
Capital expenditures |
(1,642) |
(1,622) |
|
Acquisition, net of cash received |
(7) |
(119) |
|
Proceeds from divestitures, net of disbursements |
- |
60 |
|
Cash received from Kraft Foods Group related to the Spin-Off |
- |
55 |
|
Proceeds from sale of property, plant and equipment and other |
7 |
143 |
|
Net cash used in investing activities |
(1,642) |
(1,483) |
|
CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES |
|||
Issuances of commercial paper, maturities greater than 90 days |
2,082 |
1,329 |
|
Repayments of commercial paper, maturities greater than 90 days |
(2,713) |
(607) |
|
Net issuances of other short-term borrowings, net |
398 |
613 |
|
Long-term debt proceeds |
3,032 |
3,248 |
|
Long-term debt repaid |
(3,017) |
(7,559) |
|
Repurchase of Common Stock |
(1,700) |
(2,900) |
|
Dividends paid |
(964) |
(943) |
|
Other |
194 |
132 |
|
Net cash used in financing activities |
(2,688) |
(6,687) |
|
Effect of exchange rate changes on cash and cash equivalents |
(223) |
(93) |
|
Cash and cash equivalents: |
|||
Increase / (decrease) |
(991) |
(1,853) |
|
Balance at beginning of period |
2,622 |
4,475 |
|
Balance at end of period |
$ 1,631 |
$ 2,622 |
Reconciliation of GAAP and Non-GAAP Financial Measures
(Unaudited)
The company reports its financial results in accordance with accounting principles generally accepted in
DEFINITIONS OF THE COMPANY'S NON-GAAP FINANCIAL MEASURES
The company's non-GAAP financial measures and corresponding metrics reflect how the company evaluates its operating results currently and provide improved comparability of operating results. As new events or circumstances arise, these definitions could change over time:
- "Organic Net Revenue" is defined as net revenues excluding the impact of acquisitions, divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement), Integration Program costs, accounting calendar changes and currency rate fluctuations.
- "Adjusted Gross Profit" is defined as gross profit excluding the impacts of pension costs related to obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the Integration Program and other acquisition integration costs and the operating results of divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement). The company also evaluates growth in the company's Adjusted Gross Profit on a constant currency basis.
-
"Adjusted Operating Income" and "Adjusted Segment Operating Income" are defined as operating income (or segment operating income) excluding the impacts of Spin-Off Costs, pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the 2014-2018 Restructuring Program, the Integration Program and other acquisition integration costs, the remeasurement of net monetary assets in
Venezuela , the benefit from theCadbury acquisition-related indemnification resolution, incremental costs associated with the JDE coffee transactions, impairment charges related to goodwill and intangible assets, gains / losses from divestitures or acquisitions, acquisition-related costs and the operating results of divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement). The company also evaluates growth in the company's Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis. -
"Adjusted EPS" is defined as diluted EPS attributable to
Mondelez International from continuing operations excluding the impacts of Spin-Off Costs, pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the 2014-2018 Restructuring Program, the Integration Program and other acquisition integration costs, the remeasurement of net monetary assets inVenezuela , the net benefit from theCadbury acquisition-related indemnification resolution, the loss on debt extinguishment and related expenses, the residual tax benefit impact from the resolution of the Starbucks arbitration, hedging gains / losses and incremental costs associated with the JDE coffee transactions, impairment charges related to goodwill and intangible assets, gains / losses from divestitures or acquisitions, acquisition-related costs and net earnings from divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement), and including an interest expense adjustment related to the Spin-Off transaction. The company also evaluates growth in the company's Adjusted EPS on a constant currency basis. -
"Free Cash Flow excluding items" is defined as Free Cash Flow (net cash provided by operating activities less capital expenditures) excluding taxes paid on the Starbucks arbitration award and cash payments associated with accrued interest and other related fees due to the company's completion of a
$1.6 billion cash tender offer for some of its outstanding high coupon long-term debt onFebruary 6, 2014 .
See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures for the three and twelve months ended
SEGMENT OPERATING INCOME
The company uses segment operating income to evaluate segment performance and allocate resources. The company believes it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, the benefit from the
ITEMS IMPACTING COMPARABILITY OF OPERATING RESULTS
The following information is provided to give qualitative and quantitative information related to items impacting comparability of operating results. The company determines which items to consider as "items impacting comparability" based on how management views the company's business; makes financial, operating and planning decisions; and evaluates the company's ongoing performance. In addition, the company provides the impact that changes in currency exchange rates had on the company's financial results (referred to as "constant currency").
Divestitures
The company excludes the operating results of businesses divested, including businesses under sales agreements and exits of major product lines under a sale or licensing agreement. The company did not divest any businesses during the three months and twelve months ended
Acquisition
On
Accounting Calendar Change
In connection with moving toward a common consolidation date across the company, in the first quarter of 2013, the company changed the consolidation date for the
Integration Program and other acquisition integration costs
Integration Program costs
Integration Program costs are defined as the costs associated with combining the
Other acquisition integration costs
In connection with the acquisition of a biscuit operation in
Spin-Off Costs
On
2012-2014 Restructuring Program
In 2012, the company's Board of Directors approved
Restructuring costs
The company recorded within asset impairment and exit costs charges of
Implementation costs
Implementation costs are directly attributable to restructuring activities; however, they do not qualify for accounting treatment as exit or disposal activities. The company recorded implementation costs of
Acquisition-related costs
On
In connection, with the acquisition of the biscuit operation in
Net benefit from Indemnification Resolution
As part of the 2010
Remeasurement of Venezuelan net monetary assets
As a result of recent Venezuelan currency exchange developments and the expected impact on the company's Venezuelan operations, the company remeasured its Venezuelan bolivar-denominated net monetary assets as of
During the three months ended
The company continues to monitor developments in the currency and actively manage its investment and exposures in Venezuela. If any of the rates, or application of the rates to the company's business, were to change, the company would recognize additional currency losses or gains, which could be significant.
Loss on debt extinguishment and related costs
On
On
2014-2018 Restructuring Program
On
Restructuring costs
The company recorded within asset impairment and exit costs charges of
Implementation costs
Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. The company recorded implementation costs of
Unrealized hedging gains / losses and incremental costs for the JDE coffee transactions
On
Upon completion of all proposed transactions, the company will receive cash of approximately €4 billion and a 49 percent equity interest in the new company, to be called Jacobs Douwe Egberts. AHBV will hold a majority share in the proposed combined company and will have a majority of the seats on the board, which will be chaired by current D.E Master Blenders 1753 Chairman
Certain expenses related to readying the businesses for the planned transactions have been incurred. Within selling, general and administrative expenses, incremental costs were
Intangible Asset Impairment
During the 2014 review of non-amortizable intangible assets, the company recorded
Constant currency
Management evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the company's financial statements in the comparable prior year period to determine what the current period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior year period.
Schedule 4 |
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|
|||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||
Net Revenues |
|||||||||||
(in millions of U.S. dollars) (Unaudited) |
|||||||||||
Latin America |
Pacific |
EEMEA |
|
North America |
International |
||||||
For the Three Months Ended |
|||||||||||
Reported (GAAP) |
$ 1,240 |
$ 1,145 |
$ 898 |
$ 3,761 |
$ 1,786 |
$ 8,830 |
|||||
Divestitures |
- |
- |
- |
- |
- |
- |
|||||
Currency |
301 |
51 |
234 |
295 |
23 |
904 |
|||||
Organic (Non-GAAP) |
$ 1,541 |
$ 1,196 |
$ 1,132 |
$ 4,056 |
$ 1,809 |
$ 9,734 |
|||||
For the Three Months Ended |
|||||||||||
Reported (GAAP) |
$ 1,337 |
$ 1,209 |
$ 1,065 |
$ 4,033 |
$ 1,844 |
$ 9,488 |
|||||
Divestitures |
- |
- |
- |
(2) |
(8) |
(10) |
|||||
Accounting calendar change |
- |
- |
- |
(19) |
- |
(19) |
|||||
Organic (Non-GAAP) |
$ 1,337 |
$ 1,209 |
$ 1,065 |
$ 4,012 |
$ 1,836 |
$ 9,459 |
|||||
% Change |
|||||||||||
Reported (GAAP) |
(7.3)% |
(5.3)% |
(15.7)% |
(6.7)% |
(3.1)% |
(6.9)% |
|||||
Divestitures |
- pp |
- pp |
- pp |
- pp |
0.4 pp |
0.1 pp |
|||||
Accounting calendar change |
- |
- |
- |
0.5 |
- |
0.2 |
|||||
Currency |
22.6 |
4.2 |
22.0 |
7.3 |
1.2 |
9.5 |
|||||
Organic (Non-GAAP) |
15.3 % |
(1.1)% |
6.3 % |
1.1 % |
(1.5)% |
2.9 % |
|||||
Vol/Mix |
(5.8)pp |
(6.6)pp |
(2.8)pp |
(2.7)pp |
(0.1)pp |
(3.1)pp |
|||||
Pricing |
21.1 |
5.5 |
9.1 |
3.8 |
(1.4) |
6.0 |
|||||
Latin America |
Pacific |
EEMEA |
|
North America |
International |
||||||
For the Twelve Months Ended |
|||||||||||
Reported (GAAP) |
$ 5,153 |
$ 4,605 |
$ 3,638 |
$ 13,912 |
$ 6,936 |
$ 34,244 |
|||||
Divestitures |
- |
- |
- |
- |
- |
- |
|||||
Acquisitions |
- |
- |
(14) |
- |
- |
(14) |
|||||
Currency |
1,039 |
209 |
523 |
(36) |
71 |
1,806 |
|||||
Organic (Non-GAAP) |
$ 6,192 |
$ 4,814 |
$ 4,147 |
$ 13,876 |
$ 7,007 |
$ 36,036 |
|||||
For the Twelve Months Ended |
|||||||||||
Reported (GAAP) |
$ 5,382 |
$ 4,952 |
$ 3,915 |
$ 14,059 |
$ 6,991 |
$ 35,299 |
|||||
Divestitures |
- |
- |
(20) |
(11) |
(39) |
(70) |
|||||
Accounting calendar change |
- |
- |
- |
(38) |
- |
(38) |
|||||
Organic (Non-GAAP) |
$ 5,382 |
$ 4,952 |
$ 3,895 |
$ 14,010 |
$ 6,952 |
$ 35,191 |
|||||
% Change |
|||||||||||
Reported (GAAP) |
(4.3)% |
(7.0)% |
(7.1)% |
(1.0)% |
(0.8)% |
(3.0)% |
|||||
Divestitures |
- pp |
- pp |
0.5 pp |
- pp |
0.6 pp |
0.2 pp |
|||||
Acquisitions |
- |
- |
(0.3) |
- |
- |
- |
|||||
Accounting calendar change |
- |
- |
- |
0.2 |
- |
0.1 |
|||||
Currency |
19.4 |
4.2 |
13.4 |
(0.2) |
1.0 |
5.1 |
|||||
Organic (Non-GAAP) |
15.1 % |
(2.8)% |
6.5 % |
(1.0)% |
0.8 % |
2.4 % |
|||||
Vol/Mix |
(4.2)pp |
(5.7)pp |
0.8 pp |
(2.3)pp |
0.7 pp |
(2.1)pp |
|||||
Pricing |
19.3 |
2.9 |
5.7 |
1.3 |
0.1 |
4.5 |
Schedule 5 |
|||||||||
|
|||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||
Gross Profit / Operating Income |
|||||||||
(in millions of U.S. dollars) (Unaudited) |
|||||||||
For the Three Months Ended |
|||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating |
|||||
Reported (GAAP) |
$ 8,830 |
$ 3,146 |
35.6% |
$ 589 |
6.7% |
||||
Integration Program and other acquisition integration costs |
- |
- |
(1) |
||||||
Spin-Off Costs |
- |
(2) |
12 |
||||||
2012-2014 Restructuring Program |
- |
2 |
134 |
||||||
Acquisition-related costs |
- |
- |
2 |
||||||
Remeasurement of net monetary assets in |
- |
- |
6 |
||||||
2014-2018 Restructuring Program |
- |
2 |
304 |
||||||
Costs associated with the JDE coffee transactions |
- |
- |
62 |
||||||
Intangible asset impairment |
- |
- |
57 |
||||||
Adjusted (Non-GAAP) |
$ 8,830 |
$ 3,148 |
35.7% |
$ 1,165 |
13.2% |
||||
Currency |
333 |
149 |
|||||||
Adjusted @ Constant FX (Non-GAAP) |
$ 3,481 |
$ 1,314 |
|||||||
For the Three Months Ended |
|||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating |
|||||
Reported (GAAP) |
$ 9,488 |
$ 3,493 |
36.8% |
$ 1,010 |
10.6% |
||||
Integration Program and other acquisition integration costs |
- |
20 |
110 |
||||||
Spin-Off Costs |
- |
- |
29 |
||||||
2012-2014 Restructuring Program |
- |
8 |
168 |
||||||
Gains on acquisition and divestitures, net |
- |
- |
(2) |
||||||
Divestitures |
(10) |
(3) |
(2) |
||||||
Adjusted (Non-GAAP) |
$ 9,478 |
$ 3,518 |
37.1% |
$ 1,313 |
13.9% |
||||
Currency |
- |
- |
|||||||
Adjusted @ Constant FX (Non-GAAP) |
$ 3,518 |
$ 1,313 |
|||||||
Gross Profit |
Operating Income |
||||||||
% Change - Reported (GAAP) |
(9.9)% |
(41.7)% |
|||||||
% Change - Adjusted (Non-GAAP) |
(10.5)% |
(11.3)% |
|||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
(1.1)% |
0.1 % |
|||||||
For the Twelve Months Ended |
|||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating |
|||||
Reported (GAAP) |
|
|
36.8% |
$ 3,242 |
9.5% |
||||
Integration Program and other acquisition integration costs |
- |
- |
(4) |
||||||
Spin-Off Costs |
- |
(2) |
35 |
||||||
2012-2014 Restructuring Program |
- |
11 |
459 |
||||||
Acquisition-related costs |
- |
- |
2 |
||||||
Remeasurement of net monetary assets in |
- |
- |
167 |
||||||
2014-2018 Restructuring Program |
- |
3 |
381 |
||||||
Costs associated with the JDE coffee transactions |
- |
- |
77 |
||||||
Intangible asset impairment |
- |
- |
57 |
||||||
Adjusted (Non-GAAP) |
|
|
36.8% |
$ 4,416 |
12.9% |
||||
Currency |
636 |
287 |
|||||||
Adjusted @ Constant FX (Non-GAAP) |
|
$ 4,703 |
|||||||
For the Twelve Months Ended |
|||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating Income margin |
|||||
Reported (GAAP) |
|
|
37.1% |
$ 3,971 |
11.2% |
||||
Integration Program and other acquisition integration costs |
- |
58 |
220 |
||||||
Spin-Off Costs |
- |
- |
62 |
||||||
2012-2014 Restructuring Program |
- |
10 |
330 |
||||||
Acquisition-related costs |
- |
- |
2 |
||||||
Net benefit from indemnification resolution |
- |
- |
(336) |
||||||
Remeasurement of net monetary assets in |
- |
- |
54 |
||||||
Gains on acquisition and divestitures, net |
- |
- |
(30) |
||||||
Divestitures |
(70) |
(18) |
(6) |
||||||
Adjusted (Non-GAAP) |
|
|
37.4% |
$ 4,267 |
12.1% |
||||
Currency |
- |
- |
|||||||
Adjusted @ Constant FX (Non-GAAP) |
|
$ 4,267 |
|||||||
Gross Profit |
Operating Income |
||||||||
% Change - Reported (GAAP) |
(3.9)% |
(18.4)% |
|||||||
% Change - Adjusted (Non-GAAP) |
(4.2)% |
3.5 % |
|||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
0.6 % |
10.2 % |
Schedule 6 |
|||||||||||||||
|
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||||||
Condensed Consolidated Statements of Earnings |
|||||||||||||||
(in millions of U.S. dollars, except per share data) (Unaudited) |
|||||||||||||||
For the Three Months Ended |
|||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Non-controlling interest |
Net Earnings attributable to |
Diluted EPS attributable to |
||||||||
Reported (GAAP) |
$ 589 |
$ (29) |
$ 618 |
$ 111 |
18.0 % |
$ 7 |
$ 500 |
$ 0.29 |
|||||||
Integration Program and other acquisition integration costs |
(1) |
- |
(1) |
(1) |
- |
- |
- |
||||||||
Spin-Off Costs |
12 |
- |
12 |
4 |
- |
8 |
0.01 |
||||||||
2012-2014 Restructuring Program |
134 |
- |
134 |
35 |
- |
99 |
0.06 |
||||||||
Acquisition-related costs |
2 |
- |
2 |
1 |
- |
1 |
- |
||||||||
Remeasurement of net monetary assets in |
6 |
- |
6 |
5 |
- |
1 |
- |
||||||||
2014-2018 Restructuring Program |
304 |
- |
304 |
78 |
- |
226 |
0.14 |
||||||||
Income / (costs) associated with the JDE coffee transactions |
62 |
215 |
(153) |
(70) |
- |
(83) |
(0.05) |
||||||||
Intangible asset impairment |
57 |
- |
57 |
18 |
- |
39 |
0.02 |
||||||||
Adjusted (Non-GAAP) |
$ 1,165 |
$ 186 |
$ 979 |
$ 181 |
18.5 % |
$ 7 |
$ 791 |
$ 0.47 |
|||||||
Diluted Average Shares Outstanding |
1,695 |
||||||||||||||
For the Three Months Ended |
|||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Non-controlling interest |
Net Earnings attributable to |
Diluted EPS attributable to |
||||||||
Reported (GAAP) |
$ 1,010 |
$ 847 |
$ 163 |
$ (7) |
(4.3)% |
$ 7 |
$ 163 |
$ 0.09 |
|||||||
Integration Program and other acquisition integration costs |
110 |
- |
110 |
23 |
- |
87 |
0.05 |
||||||||
Spin-Off Costs |
29 |
- |
29 |
13 |
- |
16 |
0.01 |
||||||||
2012-2014 Restructuring Program |
168 |
- |
168 |
40 |
- |
128 |
0.07 |
||||||||
Loss on debt extinguishment and related expenses |
- |
(612) |
612 |
224 |
- |
388 |
0.22 |
||||||||
Residual tax benefit due to resolution of Starbucks arbitration |
- |
- |
- |
36 |
- |
(36) |
(0.02) |
||||||||
Gains on acquisition and divestitures, net |
(2) |
- |
(2) |
- |
- |
(2) |
- |
||||||||
Divestitures |
(2) |
- |
(2) |
- |
- |
(2) |
- |
||||||||
Adjusted (Non-GAAP) |
$ 1,313 |
$ 235 |
$ 1,078 |
$ 329 |
30.5 % |
$ 7 |
$ 742 |
$ 0.42 |
|||||||
Diluted Average Shares Outstanding |
1,761 |
||||||||||||||
For the Twelve Months Ended |
|||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Non-controlling interest |
Net Earnings attributable to |
Diluted EPS attributable to |
||||||||
Reported (GAAP) |
$ 3,242 |
$ 688 |
$ 2,554 |
$ 353 |
13.8 % |
$ 17 |
$ 2,184 |
$ 1.28 |
|||||||
Integration Program and other acquisition integration costs |
(4) |
- |
(4) |
(1) |
- |
(3) |
- |
||||||||
Spin-Off Costs |
35 |
- |
35 |
13 |
- |
22 |
0.01 |
||||||||
2012-2014 Restructuring Program |
459 |
- |
459 |
107 |
- |
352 |
0.21 |
||||||||
Acquisition-related costs |
2 |
- |
2 |
1 |
- |
1 |
- |
||||||||
Remeasurement of net monetary assets in |
167 |
- |
167 |
16 |
- |
151 |
0.09 |
||||||||
Loss on debt extinguishment and related expenses |
- |
(495) |
495 |
188 |
- |
307 |
0.18 |
||||||||
2014-2018 Restructuring Program |
381 |
- |
381 |
101 |
- |
280 |
0.16 |
||||||||
Income / (costs) associated with the JDE coffee transactions |
77 |
628 |
(551) |
(219) |
- |
(332) |
(0.19) |
||||||||
Intangible asset impairment |
57 |
- |
57 |
18 |
- |
39 |
0.02 |
||||||||
Adjusted (Non-GAAP) |
$ 4,416 |
$ 821 |
$ 3,595 |
$ 577 |
16.1 % |
$ 17 |
$ 3,001 |
$ 1.76 |
|||||||
Diluted Average Shares Outstanding |
1,709 |
||||||||||||||
For the Twelve Months Ended |
|||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Non-controlling interest |
Net Earnings attributable to |
Diluted EPS attributable to |
||||||||
Reported (GAAP) |
$ 3,971 |
$ 1,579 |
$ 2,392 |
$ 60 |
2.5 % |
$ 20 |
$ 2,312 |
$ 1.29 |
|||||||
Integration Program and other acquisition integration costs |
220 |
- |
220 |
45 |
- |
175 |
0.10 |
||||||||
Spin-Off Costs |
62 |
- |
62 |
23 |
- |
39 |
0.02 |
||||||||
2012-2014 Restructuring Program |
330 |
- |
330 |
82 |
- |
248 |
0.14 |
||||||||
Acquisition-related costs |
2 |
(5) |
7 |
- |
- |
7 |
- |
||||||||
Net benefit from indemnification resolution |
(336) |
49 |
(385) |
(22) |
- |
(363) |
(0.20) |
||||||||
Remeasurement of net monetary assets in |
54 |
- |
54 |
(5) |
- |
59 |
0.03 |
||||||||
Loss on debt extinguishment and related expenses |
- |
(612) |
612 |
224 |
- |
388 |
0.22 |
||||||||
Residual tax benefit due to resolution of Starbucks arbitration |
- |
- |
- |
36 |
- |
(36) |
(0.02) |
||||||||
Gains on acquisition and divestitures, net |
(30) |
- |
(30) |
39 |
- |
(69) |
(0.04) |
||||||||
Divestitures |
(6) |
- |
(6) |
(2) |
- |
(4) |
- |
||||||||
Adjusted (Non-GAAP) |
$ 4,267 |
$ 1,011 |
$ 3,256 |
$ 480 |
14.7 % |
$ 20 |
$ 2,756 |
$ 1.54 |
|||||||
Diluted Average Shares Outstanding |
1,789 |
Schedule 7 |
|||||||||
|
|||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||
Diluted EPS |
|||||||||
(Unaudited) |
|||||||||
For the Three Months
Ended |
For the Twelve Months
Ended |
||||||||
Diluted EPS |
% Growth |
Diluted EPS |
% Growth |
||||||
2013 Diluted EPS Attributable to |
$ 1.00 |
$ 2.19 |
|||||||
Discontinued Operations |
0.91 |
0.90 |
|||||||
2013 Diluted EPS Attributable to |
|||||||||
Continuing Operations |
0.09 |
1.29 |
|||||||
Integration Program and other acquisition integration costs |
0.05 |
0.10 |
|||||||
Spin-Off Costs |
0.01 |
0.02 |
|||||||
2012-2014 Restructuring Program costs |
0.07 |
0.14 |
|||||||
Acquisition-related costs |
- |
- |
|||||||
Net benefit from indemnification resolution |
- |
(0.20) |
|||||||
Loss on debt extinguishment and related expenses |
0.22 |
0.22 |
|||||||
Residual tax impact associated with Starbucks arbitration resolution |
(0.02) |
(0.02) |
|||||||
Remeasurement of net monetary assets in |
- |
0.03 |
|||||||
Gains on acquisition and divestitures, net |
- |
(0.04) |
|||||||
2013 Adjusted EPS (Non-GAAP) |
0.42 |
1.54 |
|||||||
Increase in operations |
0.04 |
0.25 |
|||||||
Gain on sale of property in 2013 |
(0.03) |
(0.03) |
|||||||
VAT related benefits |
0.04 |
0.04 |
|||||||
Unrealized gains/(losses) on hedging activities |
(0.04) |
(0.07) |
|||||||
Lower interest and other expense, net |
0.02 |
0.08 |
|||||||
Changes in shares outstanding |
0.02 |
0.08 |
|||||||
Changes in income taxes |
0.06 |
0.01 |
|||||||
2014 Adjusted EPS (Constant Currency) (Non-GAAP) |
0.53 |
26.2% |
1.90 |
23.4% |
|||||
Unfavorable foreign currency - translation |
(0.06) |
(0.14) |
|||||||
2014 Adjusted EPS (Non-GAAP) |
0.47 |
11.9% |
1.76 |
14.3% |
|||||
Integration Program and other acquisition integration costs |
- |
- |
|||||||
Spin-Off Costs |
(0.01) |
(0.01) |
|||||||
2012-2014 Restructuring Program costs |
(0.06) |
(0.21) |
|||||||
Remeasurement of net monetary assets in |
- |
(0.09) |
|||||||
Loss on debt extinguishment and related expenses |
- |
(0.18) |
|||||||
Intangible asset impairment charges |
(0.02) |
(0.02) |
|||||||
2014-2018 Restructuring Program costs |
(0.14) |
(0.16) |
|||||||
Income / (costs) associated with the JDE coffee transactions |
0.05 |
0.19 |
|||||||
2014 Diluted EPS Attributable to |
$ 0.29 |
(71.0)% |
$ 1.28 |
(41.6)% |
Schedule 8a |
||||||||||||||||||||
|
||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||
Segment Data |
||||||||||||||||||||
(in millions of U.S. dollars) (Unaudited) |
||||||||||||||||||||
For the Three Months Ended |
||||||||||||||||||||
|
|
EEMEA |
|
|
Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items |
|
|||||||||||
Net Revenue |
||||||||||||||||||||
Reported (GAAP) |
$ 1,240 |
|
$ 898 |
|
|
$ - |
$ - |
$ - |
$ - |
$ 8,830 |
||||||||||
Divestitures |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||
Adjusted (Non-GAAP) |
$ 1,240 |
|
$ 898 |
|
|
$ - |
$ - |
$ - |
$ - |
$ 8,830 |
||||||||||
Operating Income |
||||||||||||||||||||
Reported (GAAP) |
$ 171 |
$ 21 |
$ 24 |
$ 476 |
$ 178 |
$ (104) |
$ (126) |
$ (49) |
$ (2) |
$ 589 |
||||||||||
Integration Program and other acquisition integration costs |
- |
(1) |
1 |
- |
- |
- |
(1) |
- |
- |
(1) |
||||||||||
Spin-Off Costs |
- |
- |
- |
- |
- |
- |
12 |
- |
- |
12 |
||||||||||
2012-2014 Restructuring Program |
3 |
11 |
31 |
30 |
55 |
- |
4 |
- |
- |
134 |
||||||||||
Acquisition-related costs |
- |
- |
- |
- |
- |
- |
- |
- |
2 |
2 |
||||||||||
Remeasurement of net monetary assets in |
6 |
- |
- |
- |
- |
- |
- |
- |
- |
6 |
||||||||||
2014-2018 Restructuring Program |
63 |
21 |
20 |
114 |
61 |
- |
25 |
- |
- |
304 |
||||||||||
Costs associated with the JDE coffee transactions |
- |
- |
5 |
16 |
- |
- |
41 |
- |
- |
62 |
||||||||||
Intangible asset impairment |
- |
48 |
- |
9 |
- |
- |
- |
- |
- |
57 |
||||||||||
Adjusted (Non-GAAP) |
$ 243 |
$ 100 |
$ 81 |
$ 645 |
$ 294 |
$ (104) |
$ (45) |
$ (49) |
$ - |
$ 1,165 |
||||||||||
Currency |
71 |
7 |
30 |
50 |
5 |
- |
(11) |
(3) |
- |
149 |
||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ 314 |
$ 107 |
$ 111 |
$ 695 |
$ 299 |
$ (104) |
$ (56) |
$ (52) |
$ - |
$ 1,314 |
||||||||||
% Change - Reported (GAAP) |
17.9 % |
(81.4)% |
(75.3)% |
(8.6)% |
(27.6)% |
n/m |
(85.3)% |
7.5 % |
n/m |
(41.7)% |
||||||||||
% Change - Adjusted (Non-GAAP) |
33.5 % |
(25.4)% |
(34.7)% |
2.5 % |
(10.9)% |
n/m |
(12.5)% |
7.5 % |
n/m |
(11.3)% |
||||||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
72.5 % |
(20.1)% |
(10.5)% |
10.5 % |
(9.4)% |
n/m |
(40.0)% |
1.9 % |
n/m |
0.1 % |
||||||||||
Operating Income Margin |
||||||||||||||||||||
Reported % |
13.8 % |
1.8 % |
2.7 % |
12.7 % |
10.0 % |
6.7 % |
||||||||||||||
Reported pp change |
3.0 pp |
(7.5)pp |
(6.4)pp |
(0.2)pp |
(3.3)pp |
(3.9)pp |
||||||||||||||
Adjusted % |
19.6 % |
8.7 % |
9.0 % |
17.1 % |
16.5 % |
13.2 % |
||||||||||||||
Adjusted pp change |
6.0 pp |
(2.4)pp |
(2.6)pp |
1.5 pp |
(1.5)pp |
(0.7)pp |
||||||||||||||
For the Three Months Ended |
||||||||||||||||||||
|
|
EEMEA |
|
|
Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items |
|
|||||||||||
Net Revenue |
||||||||||||||||||||
Reported (GAAP) |
$ 1,337 |
|
|
|
|
$ - |
$ - |
$ - |
$ - |
$ 9,488 |
||||||||||
Divestitures |
- |
- |
- |
(2) |
(8) |
- |
- |
- |
- |
(10) |
||||||||||
Adjusted (Non-GAAP) |
$ 1,337 |
|
|
|
|
$ - |
$ - |
$ - |
$ - |
$ 9,478 |
||||||||||
Operating Income |
||||||||||||||||||||
Reported (GAAP) |
$ 145 |
$ 113 |
$ 97 |
$ 521 |
$ 246 |
$ 7 |
$ (68) |
$ (53) |
$ 2 |
$ 1,010 |
||||||||||
Integration Program and other acquisition integration costs |
25 |
19 |
20 |
46 |
- |
- |
- |
- |
- |
110 |
||||||||||
Spin-Off Costs |
- |
- |
- |
- |
- |
- |
29 |
- |
- |
29 |
||||||||||
2012-2014 Restructuring Program |
12 |
2 |
7 |
62 |
85 |
- |
- |
- |
- |
168 |
||||||||||
Gains on acquisition and divestitures, net |
- |
- |
- |
- |
- |
- |
- |
- |
(2) |
(2) |
||||||||||
Divestitures |
- |
- |
- |
- |
(1) |
- |
(1) |
- |
- |
(2) |
||||||||||
Adjusted (Non-GAAP) |
$ 182 |
$ 134 |
$ 124 |
$ 629 |
$ 330 |
$ 7 |
$ (40) |
$ (53) |
$ - |
$ 1,313 |
||||||||||
Currency |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ 182 |
$ 134 |
$ 124 |
$ 629 |
$ 330 |
$ 7 |
$ (40) |
$ (53) |
$ - |
$ 1,313 |
||||||||||
Operating Income Margin |
||||||||||||||||||||
Reported % |
10.8 % |
9.3 % |
9.1 % |
12.9 % |
13.3 % |
10.6 % |
||||||||||||||
Adjusted % |
13.6 % |
11.1 % |
11.6 % |
15.6 % |
18.0 % |
13.9 % |
Schedule 8b |
||||||||||||||||||||
|
||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||
Segment Data |
||||||||||||||||||||
(in millions of U.S. dollars) (Unaudited) |
||||||||||||||||||||
For the Twelve Months Ended |
||||||||||||||||||||
|
|
EEMEA |
|
|
Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items |
|
|||||||||||
Net Revenue |
||||||||||||||||||||
Reported (GAAP) |
$ 5,153 |
|
|
$ 13,912 |
|
$ - |
$ - |
$ - |
$ - |
$ 34,244 |
||||||||||
Divestitures |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||
Adjusted (Non-GAAP) |
$ 5,153 |
|
|
$ 13,912 |
|
$ - |
$ - |
$ - |
$ - |
$ 34,244 |
||||||||||
Operating Income |
||||||||||||||||||||
Reported (GAAP) |
$ 475 |
$ 385 |
$ 327 |
$ 1,770 |
$ 922 |
$ (112) |
$ (317) |
$ (206) |
$ (2) |
$ 3,242 |
||||||||||
Integration Program and other acquisition integration costs |
- |
(1) |
4 |
(5) |
- |
- |
(2) |
- |
- |
(4) |
||||||||||
Spin-Off Costs |
- |
- |
- |
- |
- |
- |
35 |
- |
- |
35 |
||||||||||
2012-2014 Restructuring Program |
11 |
40 |
59 |
200 |
145 |
- |
4 |
- |
- |
459 |
||||||||||
Acquisition-related costs |
- |
- |
- |
- |
- |
- |
- |
- |
2 |
2 |
||||||||||
Remeasurement of net monetary assets in |
167 |
- |
- |
- |
- |
- |
- |
- |
- |
167 |
||||||||||
2014-2018 Restructuring Program |
97 |
25 |
23 |
128 |
62 |
- |
46 |
- |
- |
381 |
||||||||||
Costs associated with the JDE coffee transactions |
- |
- |
5 |
31 |
- |
- |
41 |
- |
- |
77 |
||||||||||
Intangible asset impairment |
- |
48 |
- |
9 |
- |
- |
- |
- |
- |
57 |
||||||||||
Adjusted (Non-GAAP) |
$ 750 |
$ 497 |
$ 418 |
$ 2,133 |
|
$ (112) |
$ (193) |
$ (206) |
$ - |
$ 4,416 |
||||||||||
Currency |
205 |
20 |
63 |
- |
9 |
- |
(7) |
(3) |
- |
287 |
||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ 955 |
$ 517 |
$ 481 |
$ 2,133 |
|
$ (112) |
$ (200) |
$ (209) |
$ - |
$ 4,703 |
||||||||||
% Change - Reported (GAAP) |
(16.7)% |
(24.8)% |
(13.7)% |
4.2 % |
3.7 % |
n/m |
(10.5)% |
5.1 % |
n/m |
(18.4)% |
||||||||||
% Change - Adjusted (Non-GAAP) |
10.6 % |
(10.5)% |
(8.3)% |
11.3 % |
8.7 % |
n/m |
13.1 % |
5.1 % |
n/m |
3.5 % |
||||||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
40.9 % |
(6.8)% |
5.5 % |
11.3 % |
9.5 % |
n/m |
9.9 % |
3.7 % |
n/m |
10.2 % |
||||||||||
Operating Income Margin |
||||||||||||||||||||
Reported % |
9.2 % |
8.4 % |
9.0 % |
12.7 % |
13.3 % |
9.5 % |
||||||||||||||
Reported pp change |
(1.4)pp |
(1.9)pp |
(0.7)pp |
0.6 pp |
0.6 pp |
(1.7)pp |
||||||||||||||
Adjusted % |
14.6 % |
10.8 % |
11.5 % |
15.3 % |
16.3 % |
12.9 % |
||||||||||||||
Adjusted pp change |
2.0 pp |
(0.4)pp |
(0.2)pp |
1.7 pp |
1.4 pp |
0.8 pp |
||||||||||||||
For the Twelve Months Ended |
||||||||||||||||||||
|
|
EEMEA |
|
|
Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items |
|
|||||||||||
Net Revenue |
||||||||||||||||||||
Reported (GAAP) |
$ 5,382 |
|
|
$ 14,059 |
|
$ - |
$ - |
$ - |
$ - |
$ 35,299 |
||||||||||
Divestitures |
- |
- |
(20) |
(11) |
(39) |
- |
- |
- |
- |
(70) |
||||||||||
Adjusted (Non-GAAP) |
$ 5,382 |
|
|
$ 14,048 |
|
$ - |
$ - |
$ - |
$ - |
$ 35,229 |
||||||||||
Operating Income |
||||||||||||||||||||
Reported (GAAP) |
$ 570 |
$ 512 |
$ 379 |
$ 1,699 |
$ 889 |
$ 62 |
$ (287) |
$ (217) |
$ 364 |
$ 3,971 |
||||||||||
Integration Program and other acquisition integration costs |
33 |
41 |
56 |
88 |
1 |
- |
1 |
- |
- |
220 |
||||||||||
Spin-Off Costs |
- |
- |
- |
- |
- |
- |
62 |
- |
- |
62 |
||||||||||
2012-2014 Restructuring Program |
21 |
2 |
14 |
131 |
160 |
- |
2 |
- |
- |
330 |
||||||||||
Acquisition-related costs |
- |
- |
- |
- |
- |
- |
- |
- |
2 |
2 |
||||||||||
Benefit from indemnification resolution |
- |
- |
- |
- |
- |
- |
- |
- |
(336) |
(336) |
||||||||||
Remeasurement of net monetary assets in |
54 |
- |
- |
- |
- |
- |
- |
- |
- |
54 |
||||||||||
Gains on acquisition and divestitures, net |
- |
- |
- |
- |
- |
- |
- |
- |
(30) |
(30) |
||||||||||
Divestitures |
- |
- |
7 |
(2) |
(11) |
- |
- |
- |
- |
(6) |
||||||||||
Adjusted (Non-GAAP) |
$ 678 |
$ 555 |
$ 456 |
$ 1,916 |
|
$ 62 |
$ (222) |
$ (217) |
$ - |
$ 4,267 |
||||||||||
Currency |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ 678 |
$ 555 |
$ 456 |
$ 1,916 |
|
$ 62 |
$ (222) |
$ (217) |
$ - |
$ 4,267 |
||||||||||
Operating Income Margin |
||||||||||||||||||||
Reported % |
10.6 % |
10.3 % |
9.7 % |
12.1 % |
12.7 % |
11.2 % |
||||||||||||||
Adjusted % |
12.6 % |
11.2 % |
11.7 % |
13.6 % |
14.9 % |
12.1 % |
Schedule 9 |
|
|
|
Reconciliation of GAAP to Non-GAAP Measures |
|
Net Cash Provided by Operating Activities to Free Cash Flow excluding items |
|
(in millions of U.S. dollars) (Unaudited) |
|
For the year ended
2014 |
|
Net Cash Provided by Operating Activities (GAAP) |
$ 3,562 |
Capital Expenditures |
(1,642) |
Free Cash Flow (Non-GAAP) |
$ 1,920 |
Items |
|
Cash impact of the resolution of the Starbucks arbitration (1) |
498 |
Cash payments for accrued interest and other related fees associated with debt |
47 |
Free Cash Flow excluding items (Non-GAAP) |
$ 2,465 |
(1) |
During the fourth quarter of 2013, the dispute with |
(2) |
|
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